Laptop prices will drop from Rs1 lakh to Rs40,000 thanks to India made semiconductors, says Vedanta Chairman

Under pressure from supply chain issues caused by a global chip shortage, the average price of a laptop launched in India surged beyond Rs60,000 in India. But expensive electronics didn’t affect demand, as a record 5.8 million PC shipments entered Indian markets for the first quarter of 2022. Now Vedanta-Foxconn is all set to transform India’s tech landscape with the country’s first semiconductor manufacturing unit in Gujarat.

Laptops currently priced at Rs 1 lakh will be available for less than Rs 40,000, thanks to India-made semiconductors and glass at the Rs 1.54 lakh crore plant. The Chairman of Vedanta Anil Agarwal made the prediction in an interview with CNBC TV18, and added that components being made in Taiwan and Korea will now be made in India. The company is setting up a joint venture in which Taiwanese electronics powerhouse Foxconn will have a 38 per cent stake.

Self-sufficient for a digital future

The manufacturing facility in Gujarat will start pushing out semiconductors after two years, and the company expects a $3.5 billion turnover from the business, of which exports will account for $1 billion. India currently imports 100% of its semiconductors and spent $15 billion on procuring electronics in 2020, of which 37 per cent came from  China. An SBI report has suggested that even if India cuts down dependency on Chinese exports by 20 per cent, it can add $8 billion to our GDP.

Ventures to manufacture semiconductors in India such as Vedanta’s, are also supported by a Rs 76000 crore government scheme, which has been created to finance up to 50% of the cost. The capacity to produce its own microchips, will enable India to become self-sufficient for a future which will be dominated by tech.